SHANDONG, China — Tire makers throughout Shandong Province are gearing up to hopefully regain lost sales in the U.S. following the expiration of the U.S.'s three-year span of elevated tariffs on Chinese car and light truck tires, according to a report on the China Rubber Industry Association (CRIA) website.
Shandong-based companies—including Triangle Group, Shandong Linglong Rubber Co. Ltd., Shandong Sailun Tire Co. Ltd.—have been building inventory in Free Trade Zones ahead of the change, the CRIA article said, and now expect to increase sales significantly.
Many of these tire makers, quoted in the CRIA article, said they expect the style of competition will be different into the future. Instead of competing only on price, the Chinese tire makers will aim to compete on performance and technology as well.
Technologies developed ahead of the introduction of the tire labeling program in the European Union will be deployed in theU.S.market to deliver improved fuel economy and wet grip, they said.
TheU.S.'s elevated tariffs on Chinese consumer tires—35, 30 and 25 percent in the three years, starting in September 2009—expired at midnight Sept. 26 and reverted to the 4-percent duty level that existed prior to the imposition of the tariffs.
This story appeared on the website of European Rubber Journal www.european-rubber-journal.com, a London-based companion publication of Tire Business.